McCarthy Announces $1.5 Trillion Debt Ceiling Plan

On April 19^th, Speaker Kevin McCarthy announced a Republican-led plan to raise the debt ceiling to $1.5 Trillion combined with targeted spending cuts.  McCarthy’s current plan includes big non-starters for Democrats including rescinding Biden’s executive order on student loan relief, rolling back funding for the IRS, and reducing many climate change provisions.  The proposal also includes stricter work requirements for SNAP participants, which looms as a major sticking point for Farm Bill deliberations. The Biden Administration was quick to criticize the proposal and Senate Majority Leader Chuck Schumer indicated strong opposition to the House Republican proposal.

In February, the non-partisan Congressional Budget Office estimated it would not be able to prevent the US from defaulting on its debt between July and September 2023.  Since Republicans took control of congress in January, McCarthy and Biden have been in a bitter partisan standstill over what to do about the debt ceiling.  Biden and Democrats in congress have consistently called for a “no strings attached” raise, while McCarthy and Republicans in congress have consistently called for spending cuts.